August 17, 2018 by Jason Contant
As the hype around blockchain continues and it looks increasingly like the technology is here to stay, insurers are taking a closer look and seeking to create coverages to respond to this evolving market.
Blockchain currently has a variety of applications for existing operations, such as shipping, pharmaceutical and cryptocurrencies, but could also come into play for new operations (such as software development, content management and logistics).
Broking and underwriting related to blockchain is a complicated process, but insurance coverage can be placed for clients operating in the blockchain or digital asset world, said Sarah Downey, senior vice president with Marsh’s FINPRO (financial and professional liability) practice. She discussed some of the new exposures and insurance needs for blockchain in a webinar Tuesday:
Blockchain is essentially a record of digital events that is “distributed” or shared between many different parties. It can only be updated by consensus of a majority of the participants in the system. “Once entered, information can never be erased,” Deloitte said. “The blockchain contains a certain and verifiable record of every single transaction every made.”
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